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Started By
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IRS shuts down mom and pop dressmaker
Posted on 7/9/17 at 9:30 am
Posted on 7/9/17 at 9:30 am
Hours later, Mii’s Bridal & Tuxedo was out of business after serving customers for decades. Its entire inventory of wedding gowns and dresses as well as sewing machines and other equipment were sold at auction.
The hastily-called sale held inside the store netted the IRS about $17,000 — not enough to cover the roughly $31,400 in tax debt alleged, court records show. The balance is now likely unrecoverable.
The owners, Tony Thangsongcharoen, 68, and his wife, Somnuek Thangsongcharoen, 72, are fighting back. The Garland couple sued the government in federal court in Dallas in March for more than $1.8 million, alleging the IRS violated its own procedures during the tax seizure at the small storefront on Garland Road in March 2015.
“The agents auctioned off, before their very eyes, the family’s entire life savings for pennies on the dollar,” the lawsuit said.
The IRS claimed that the businesses intentionally tried to evade federal bank reporting requirements by making cash deposits just under the $10,000 limit. Critics say the IRS is being heavy-handed for seizing money from businesses when they haven’t been charged with a crime.
The couple’s attorney, Jason Freeman, received numerous internal documents from the IRS following a Freedom of Information Act request about the incident.
The lawsuit says one document received is a written “directive” from an IRS supervisor to “shut down this failing business.”
Regarding the speed of the sale, the government said in legal filings that the IRS used a special law that allows for a streamlined procedure if the agency determines the goods seized could “perish or waste” or become greatly reduced in value.
As a result, the IRS didn’t have to post advance public notice of the Mii’s sale or wait at least 10 days before selling the goods, as is normally required.
The provision also says a speedy auction can be used if storing the property would cost the IRS “great expense.”
LINK
The hastily-called sale held inside the store netted the IRS about $17,000 — not enough to cover the roughly $31,400 in tax debt alleged, court records show. The balance is now likely unrecoverable.
The owners, Tony Thangsongcharoen, 68, and his wife, Somnuek Thangsongcharoen, 72, are fighting back. The Garland couple sued the government in federal court in Dallas in March for more than $1.8 million, alleging the IRS violated its own procedures during the tax seizure at the small storefront on Garland Road in March 2015.
“The agents auctioned off, before their very eyes, the family’s entire life savings for pennies on the dollar,” the lawsuit said.
The IRS claimed that the businesses intentionally tried to evade federal bank reporting requirements by making cash deposits just under the $10,000 limit. Critics say the IRS is being heavy-handed for seizing money from businesses when they haven’t been charged with a crime.
The couple’s attorney, Jason Freeman, received numerous internal documents from the IRS following a Freedom of Information Act request about the incident.
The lawsuit says one document received is a written “directive” from an IRS supervisor to “shut down this failing business.”
Regarding the speed of the sale, the government said in legal filings that the IRS used a special law that allows for a streamlined procedure if the agency determines the goods seized could “perish or waste” or become greatly reduced in value.
As a result, the IRS didn’t have to post advance public notice of the Mii’s sale or wait at least 10 days before selling the goods, as is normally required.
The provision also says a speedy auction can be used if storing the property would cost the IRS “great expense.”
LINK
Posted on 7/9/17 at 9:34 am to Jbird
quote:
Mii’s, a small Garland business owned by an elderly immigrant couple from Thailand, was never accused in court of violating any federal laws.
This is insane
This post was edited on 7/9/17 at 9:41 am
Posted on 7/9/17 at 9:35 am to Strannix
quote:Only mentions the couples lawsuit.
was there any trial?
ETA
I don't get the speedy sale, what is perishable about dresses and Tuxedos? The storage costs couldn't be that high?
This post was edited on 7/9/17 at 9:40 am
Posted on 7/9/17 at 9:38 am to Jbird
Looks like they were never formally accused of a crime
Posted on 7/9/17 at 9:46 am to Jbird
quote:
The IRS claimed that the businesses intentionally tried to evade federal bank reporting requirements by making cash deposits just under the $10,000 limit.
It looks like the IRS just didn't like the way they made deposits. Not even a tax issue.
I read a while back about them harassing a diner for the same reason.
The law says you can't deposit over $10,000 in cash without proper documentation. If you make several $9,000+ deposits you are still in violation. Gotta love the IRS.
Instead of being ticky tack about laws why not just look at their books and see if they were engaged in illegal cash manipulation.
Posted on 7/9/17 at 9:49 am to Creidhne
The cash limit of 10K is because of drug money laundering.
I run a charity golf tournament, I made three deposits in a month into the charity account, each time two forms of ID and three or four government forms the bank had to generate, then I got a friendly visit from the IRS in person.
I run a charity golf tournament, I made three deposits in a month into the charity account, each time two forms of ID and three or four government forms the bank had to generate, then I got a friendly visit from the IRS in person.
Posted on 7/9/17 at 9:52 am to Creidhne
quote:
The law says you can't deposit over $10,000 in cash without proper documentation. If you make several $9,000+ deposits you are still in violation. Gotta love the IRS.
frick structuring laws, I just wouldn't put the money in the bank at all, get a floor safe or deposit box
Posted on 7/9/17 at 9:55 am to Jbird
quote:
Regarding the speed of the sale, the government said in legal filings that the IRS used a special law that allows for a streamlined procedure if the agency determines the goods seized could “perish or waste” or become greatly reduced in value.
Don't know if the IRS will lose. But they should. The dressmakers inventory and equipment isn't going to perish or become greatly reduced in value. These people may make more from the lawsuit than they ever made from the business.
Posted on 7/9/17 at 9:55 am to Creidhne
quote:IIRC a South Carolina diner.
It looks like the IRS just didn't like the way they made deposits. Not even a tax issue. I read a while back about them harassing a diner for the same reason.
Posted on 7/9/17 at 9:57 am to the808bass
quote:I would like to know what the judge was thinking on authorizing the speedy sale?
Don't know if the IRS will lose. But they should. The dressmakers inventory and equipment isn't going to perish or become greatly reduced in value. These people may make more from the lawsuit than they ever made from the business.
I am guessing the IRS told a line of bullshite. Case in point $4 per dress?
Posted on 7/9/17 at 9:58 am to Jbird
I realize what the law is about. The problem seems to be the IRS doesn't. If they don't like the way these small businesses handle cash just go into their books and check for a money laundering operation. Just because these small businesses "appear to be" engaged in questionable activity does give the IRS a reason to crush them.
Posted on 7/9/17 at 9:59 am to Jbird
Obama's IRS sweating on immigrants. Who'd a thunk it?
Posted on 7/9/17 at 10:00 am to Creidhne
They have a document from an IRS supervisor saying "shut the business down"
Posted on 7/9/17 at 10:00 am to Jbird
Would need more information to form an opinion but it sounds pretty heavy-handed. When it comes to the banking stuff, that is not an area to frick around with.
This post was edited on 7/9/17 at 10:01 am
Posted on 7/9/17 at 10:02 am to Creidhne
quote:I agree.
The problem seems to be the IRS doesn't. If they don't like the way these small businesses handle cash just go into their books and check for a money laundering operation. Just because these small businesses "appear to be" engaged in questionable activity does give the IRS a reason to crush them.
Posted on 7/9/17 at 10:02 am to Creidhne
quote:
The law says you can't deposit over $10,000 in cash without proper documentation. If you make several $9,000+ deposits you are still in violation. Gotta love the IRS.
The IRS doesn't write the Regs, though.
This post was edited on 7/9/17 at 10:03 am
Posted on 7/9/17 at 10:03 am to Jbird
How does the IRS even have this authority without the court finding them guilty
Posted on 7/9/17 at 10:04 am to Mr.Perfect
quote:Like another poster stated, we need more information concerning this situation.
How does the IRS even have this authority without the court finding them guilty
Posted on 7/9/17 at 10:04 am to Jbird
Don't get me wrong, everyone should have a healthy disdain for the IRS and the way it conducts itself.
Still, when I read an article like this, I start to wonder what details are being left out. How did a small mom & pop shop amass $31,400 in tax debt?
Still, when I read an article like this, I start to wonder what details are being left out. How did a small mom & pop shop amass $31,400 in tax debt?
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